In Q1 2023, there was a notable surge in travel consumption recovery, primarily attributed to the expeditious release of domestic long-haul demand and the systematic recuperation of the inbound and outbound travel market.
Tuniu Corporation (hereinafter referred to as "Tuniu", Chinese: 途牛, NASDAQ: TOUR), headquartered in Nanjing, recently announced its unaudited financial results for the first quarter ended March 31, 2023. The financial results show that, in Q1 2023, Tuniu reported net revenue of CNY 63.2 million (USD 9.2 million), an increase of 52.3% year-over-year, and gross profit was CNY 38.9 million, an increase of 145.9% from the same period last year.
In terms of the main business segments, in Q1 2023, revenues from packaged tours were CNY 40.1 million, representing a year-over-year increase of 179.2% from the corresponding period in 2022. The increase was primarily due to the growth of organized tours. Other revenues were CNY 23.1 million, representing a year-over-year decrease of 15.0% from the corresponding period in 2022. The decrease was primarily due to the decrease in commission fees received from other travel-related products and revenues generated from financial services.
In terms of the domestic market, there was a notable surge in travel consumption recovery, primarily attributed to the expeditious release of domestic long-haul demand and the systematic recuperation of the inbound and outbound travel market. In January 2023, Tuniu vacation product bookings achieved a three-fold YoY growth rate. During the Spring Festival holiday, there was a notable increase in the number of domestic group tour trips offered in packaged travel products, with a more than fourfold rise compared to the corresponding period in 2022. On March 16, Tuniu's GMV exceeded 18 million in a single day, which grew steadily for four consecutive months; the GMV of vacation products exceeded 15 million, with a year-on-year growth of more than 10 times. After entering the second quarter, users' travel demand was further stimulated, and Tuniu's "4-16" Membership Day's GMV exceeded 22 million, and the "5-16" Membership Day’s GMV exceeded 31 million, achieving steady growth for six months.
Founded in 2006, Tuniu is a leading online leisure travel company in China, providing products and services for online and offline consumers, including organized and self-guided tours, self-drive tours, cruises, scenic spot tickets, corporate tours, airline tickets, hotels, etc. Tuniu's main business is group tours, providing travelers with a large number of customized tours to choose from. According to the official display, Tuniu ranks among the top three domestic online travel websites, with the market share of online leisure tours jumping to the first in China. In 2014, Tuniu was successfully listed on NASDAQ in the United States.
In terms of overseas business, Tuniu's internationalization strategy has been officially launched since Tuniu started to experiment with outbound travel business in 2008. At present, Tuniu provides travel services from 420 cities covering more than 150 countries and regions around the world, and has served 138 million tourists in total, with overseas branches in Thailand, Hong Kong and New York. Since 2022, Tuniu has signed the memorandum of understanding on sustainable tourism cooperation, as well as other related sustainable tourism cooperation agreements, with the South Africa Tourism Bureau, the Singapore Tourism Bureau, the Austrian National Tourism Bureau, and the Saudi Arabia Tourism Bureau.
The major competitors of Tuniu include Chinese companies such as Trip.com Group (Chinese: 携程集团), and Meituan (Chinese: 美团), as well as international players such as TripAdvisor from the U.S., Hotelurbano from Brazil, and Booking.com from the Netherlands.
As of press time, Tuniu closed at USD 1.7 apiece, with a market cap of USD 21.45 million.